The automated Quantcha Trade Ideas Service has detected a promising
SHLD was recently trading at $10.70 and has an implied volatility of 54.09% for this period. Based on an analysis of the options available for SHLD expiring on 19-May-2017, there is a 34.14% likelihood that the underlying will close within the analyzed range of $10.75-$15.13 at expiration. In this scenario, the average linear return for the trade would be 109.87%.
Big 13.47% Change: After closing the last trading session at $9.43, SEARS HOLDINGS opened today at $9.48 and has reached a high of $10.76.
Trade approach: A movement as big as 13.47% is a significantly bullish indicator, so this trade is designed to be profitable if SHLD maintains its current direction and does not revert back to pricing on the bearish side of $10.70 on 19-May-2017. If possible, the trade has been padded such that slight movement against the trade would still return a profit.
Upside potential: Using this bullish strategy, the trade would be profitable if SEARS HOLDINGS closes at or above $10.15 on 19-May-2017. Based on our risk-neutral analysis, there is a 56.74% likelihood of this return.
Downside risk: As with any options trade, there is a substantial downside risk where you may lose most or all of your investment.
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This is an automated post generated based on a market analysis of delayed data at 3/28/2017 11:22:37 AM ET. The analysis does not include brokerage fees or commissions and is not investment advice.